Record Sales and Profit at Burberry

LONDON -- The shares of Burberry (LSE: BRBY) have climbed 3.4% to 1,513 pence as of 8:50 a.m. EDT after the luxury retailer revealed record annual profit and sales.

Burberry, one of the world's foremost luxury fashion brands, reported sales rising 8% to £2 billion. This increase was driven by a 14% boost in Asia-Pacific revenue, predominantly from the company's retail division in China. As a result, almost 40% of Burberry's total sales now come from the Asia-Pacific region, the company's largest geographical segment. Burberry's retail division, meanwhile, has grown to represent 71% of group sales after annual wholesale revenue was broadly flat.

Burberry's normalized pre-tax profit also reached record levels, growing 14% to £428 million. However, the company incurred an £83 million exceptional charge, reflecting the termination of its fragrance license relationship with Inter Parfums in 2012.

In light of these record results, Burberry hiked its full-year dividend by 16% to 29 pence per share.

With a market cap of £6.5 billion, Burberry is valued at 22 times its expected earnings. After the dividend was lifted today, Burberry's shares offer a trailing yield of 1.9%. Of course, whether that valuation and the prospects for the fashion industry combine to make Burberry a buy is something only you can decide.

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